By: Bill Bonner & The Daily Reckoning Crew - 20 June, 2008
-"Say goodbye to your money!"…bursting bubbles always lead to the same things… -Inflation: Enemy Number Two…what kind of world would it be if people always behaved sensibly? -Sicking "the fuzz" on terrorism…the bubble that always ends in the perp walk…and more! Full Story
At the same time the US Federal Reserve relaxed its rules, expanded it Lending Facilities, and rescued big US bank balance sheets with massive swaps of USTreasury Bonds for impaired private mortgage bonds, the Mexican Peso rose. See the March timeframe. It rose above the 93.5 critical resistance. The target on the rectangular range swing is roughly 4 points, a rise to reach 97.5, which has occurred. With deep trouble south of the border in economic fundamentals, one would expect the MexPeso to falter. Three theories will be offered, each very likely, somewhat laced together. Full Story
By: Peter Schiff, Euro Pacific Capital, Inc. - 20 June, 2008
Since the Fed has demonstrated complete incompetence at setting interest rates, why not return that function to the market? Instead of allowing the Fed to inflict unbridled havoc on our economy, why not re-impose some discipline? Instead of looking for new ways to regulate Wall Street, why not find an old way to regulate the Fed? Actually there is a simple answer to all of these questions; it’s called the gold standard. Full Story
Gold and silver are in the process of breaking out. Don’t be left behind! Already we have seen breakouts in the CCI, the CRB, DBA, Palladium, Copper and Natgas. South African gold production for April dropped 10% below April 2007. Since 1998 SA production has been cut in half! Gold mines are running out of gold, and very few worthwhile discoveries are being reported. Meanwhile the monetary spigots are working overtime to keep the banking sector from imploding. Full Story
While it may not be the best representation of the overall market, everyone watches the Dow. It is a handful of the bluest of the blue chips, so whatever happens to the Dow will likely happen to the broader market as well. The Dow is in the midst of a 200 point Friday afternoon decline, in the larger context of one-month slide, falling once again below 12,000. It looks like we're headed for a retest of the January and March lows. The watchword is: CAUTION! Full Story
What drives the price of silver? Certainly it is a function of buying and selling pressure, and primarily, this price setting mechanism takes place on the COMEX. However, so much has been written recently about short selling, price management, and naked sales, and on and on, that I wanted to take a more basic look at demand. Full Story
By: Adam Hamilton, Zeal Intelligence LLC - 20 June, 2008
While SLV isn’t for everyone, particularly hardcore traditional physical guys, it is really expanding the silver fold. Mainstream investors who are new to precious metals can buy a little SLV, which not only adds silver-price exposure but gets them watching silver regularly. SLV helps spread the silver gospel. And the more investors and capital that grow interested in silver, the bigger its secular bull will ultimately be. Full Story
A cold hard look at Economic Realities indicates that the most credible Economic Forecast is for increasing Stagflation, probably metamorphosing into a deepening Hyperinflationary Recession, or even Depression, over the next three or four years. Full Story
The Pope, we believe, is still a practicing Catholic. But selling new debt to non-bank investors looks all but impossible unless central banks – those "lenders of last resort" during a crisis – keep stepping up as "buyers of last resort" instead. Full Story
Paper money, as used today, is a scourge to mankind; however, it had its origins in China long before it came west. Also, paper money per se is not the only problem, it is the fact that it is debt; and that fractional reserves and legal tender laws make a most unholy alliance to carry out the bidding of their masters. Full Story
By: Richard Daughty, The MOGAMBO GURU - 20 June, 2008
Perhaps the fact that nothing can be done explains their inaction, because if something could be done, somebody would have thought of it in the last 3,000 years of idiotic governments destroying themselves with creating too much money and credit. Full Story
Normally I spend a considerable amount of time writing about the past week’s events. This week I won’t because something more important is going on. For the first time in a long time the gold and silver market are not being influenced by either energy or the Dollar. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 19 June, 2008
-Learning to live with inflation…Bernanke regretting rate cuts? -We will never cease discovering…the weird world is just getting weirder… -So many moving pieces in the U.S. economy…sheep need a shepherd…and more! Full Story
It is my simple contention that while selected commodities can and will get ahead of themselves (and probably already have)... the underpinning reality for their higher prices has far more to do with the value of the currency units they are priced in than with some broader investment fad. To this date, I can count on one hand the number of friends of mine outside of the business circles I run with who have made any investments in commodities. Full Story
I've been noticing a lot of talk in the media, in the US government and amongst our crowd (gold/silver bugs) about the sky high price of oil and what we can do about it. I am begging the friends of gold and silver to read chapters 29 and 30 of John Perkins book "The Secret History of the American Empire" (www.johnperkins.org/paperback) where he very clearly explains how the US Dollar was taken off the "gold standard" and put on the "oil standard" implemented by Kissinger, Shultz and Cheney back in 1971. Full Story
The purpose of this piece is to put things into a grounded factual perspective, not based upon a feeling but upon the historical results. Here is my conclusion. The mainstream approved companies such as Berkshire, Microsoft, GE, Citigroup, the housing sector have proven to be poor choices in spite of nearly universal acceptance. Yet, gold, silver and the mining companies have risen sharply these past 5 or ten years in spite of all of the public pessimism and ignorance towards gold. Full Story
By: Jason Hommel, Silver Stock Report - 19 June, 2008
In the end, grain trading is nothing like silver trading, because grain spoils, and must be eaten. Silver never spoils, and cannot be eaten. Therefore grain must be delivered before it spoils, and those who go short grain contracts are trying to extinguish thier liability to holding rotting grain by delivering grain into their contracts. This does not take place in the silver markets, where less than 10% of contracts, and often sometimes only 1% of contracts, results in any delivery. Full Story
By: Richard Daughty, The MOGAMBO GURU - 19 June, 2008
The debt ceiling was raised less than a year ago from $8.965 trillion, which means that the despicable Congress (except Ron Paul) authorized themselves to spend about $500 billion… Full Story
With residential building in a state of near-collapse, we tend to think that the construction business in general is depressed. While this largely true, there are evidently some niches within the industry that are doing quite well. Full Story
By: John Browne, Senior Market Strategist, Euro Pacific Capital - 18 June, 2008
All-in-all, it was deeply concerning to witness the G-8’s inability to decide upon real initiatives but, instead, to seek to blame others. It pointed to the fact that the severe problems currently faced by holders of U.S. dollars are likely to continue into the future. Full Story
The world will not go into a depression like the 1930’s which was a depression of productivity. The depression of the future will be one of purchasing power of the lower and middle class wage earners who will see their standard of living reduced because of the paper money system. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 18 June, 2008
-The Rolling Stones on the state of the U.S. economy…unwelcome liquidity seeps into commodities, food and fuel… -Suburban U.S.A. we hardly knew ye…cheap oil - lost and gone forever…being old and broke is an unfortunate combination… -Admonishment from China and the decline of U.S. credibility…not-so-good news from Argentina…and more! Full Story
Hanging on for another pullback from today's current Gold Price and so trying to nick a little extra off your investment outlay might prove expensive, in short. If you're looking to take a position in Gold for longer-term or deeper fundamental reasons, the kind of low-profile flat action we're seeing this June could offer your best chance to get in. Full Story
By: Jason Hommel, Silver Stock Report - 18 June, 2008
Antal Fekete responded again, and I was going to take the time to continue our debate on the dangers and harm of debt and usury and whether the silver shorts are naked short, but there is too much to report about short selling to get into the theory of that today. Also, there is an easy and practical solution that we can do to fix things. Buy physical silver, take delivery, and store it yourself! And contact Jim Sinclair! Full Story
By: Richard Daughty, The MOGAMBO GURU - 18 June, 2008
I am so scared and paranoid at the economic horror that is looming in our future that I have been drinking heavily and consuming various medications in various quantities just so I can stop screaming…in horror about inflation in prices… Full Story
We asserted here a while back that such tedium would be the last thing to expect this summer, given that the U.S. economy is no condition to tread water for the next three months. We see no reason to change the forecast, since nothing we can imagine is likely to reverse the asphyxiating deflationary trend that has gripped the housing market, as well as the consumer economy. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 17 June, 2008
-Unless you own an oil well or a goldmine, 2008 has been a bad year…a $3 trillion haircut for U.S. households on the way… -The United States is broke…one of the most negative carries in the history of housing… -Aquaculture in Iowa…seems that everyone has a house for sale - but no buyers in sight…and more! Full Story
Having watched the Financial Accounting Standard Board (FASB) grapple with the unexpensed stock options problem for more than 3-decades, and still forced to watch the consulting-crazed SEC settle case after case without forcing the wrongdoers to admit culpability, a strange sense of satisfaction arrived last week when the Financial Services Authority (FSA) attacked short sellers. Full Story
The western economies led by the United States are teetering on the brink of recession, which is expected to be followed by a prolonged period of slow growth if not something worse namely stagflation. Full Story
By: Steven Saville, Speculative Investor - 17 June, 2008
For some strange reason, despite the continual flood of lies spewing forth from the halls of government and the mountain of evidence that economic well-being and freedom from government meddling are positively correlated, there is a general distrust of the free market. Full Story
The current volatility in the price of gold and silver is a reflection of the death throes of the Bilderberger’s regime of paper money. No paper money system has ever lasted, all have ended in failure and disaster and this present system will end the same way—no matter what efforts are exerted on the behalf of paper money. Full Story
By: Richard Daughty, The MOGAMBO GURU - 17 June, 2008
And why is everybody, big and small investors alike, suddenly buying all of this silver? Could it be because silver…has always (for the last 4,000 years in a row, anyway) gone up in price when the value of the money went down? Hahaha! You bet it is! Full Story
We haven’t wavered in asserting that the markets had it all wrong about an impending Fed rate hike. We said it simply wasn’t in the cards, despite the fact that bond traders were recently pricing in a 75 percent chance of tightening by November. Our reasoning was that the U.S. economy is much too frail right now to saddle with higher interest rates, and that any move toward tightening could turn an already staggering housing bust into a full-blown disaster. Full Story
Today I am going to write on a subject that I feel is of the utmost importance to all silver investors. It’s particularly important to those holding shares of the Barclays silver ETF, traded on the American Stock Exchange under the symbol SLV. Because this may prove to be quite controversial as well, I will attempt to be thorough in my discussion, in the hopes that my words will not be misinterpreted. Although I will try to keep it short and simple, there is much to discuss. Full Story
By: Bill Bonner & The Daily Reckoning Crew - 16 June, 2008
-The Saudis say they could increase production - but some aren't so sure…the cure for high prices is still high prices… -The real reason oil prices have gone up…you can try to pump air into a burst bubble - but it will just go to another sector… -The hocus pocus of hedge funds…not much difference between McCain and Obama…and more! Full Story
Man is his own worst enemy – this truism has proven itself over and over in history – and is doing so once again in our handling of economy. As you undoubtedly know the consumer is on the ropes and in need of relief due to excessive credit. Full Story
By: David N. Vaughn, Gold Letter, Inc. - 16 June, 2008
Went to the store and paid 7 bucks for 2 pounds of fresh North Carolina blueberries. Does that sound like a good deal? Milk was close to 5 dollars a gallon. Evidently, trying to compete with gas prices. Anyone confused where things are headed? Need tech support on your PC and you will find yourself talking to someone in India. Full Story
It looks as if we have put in bottoms in all precious metals and should see an upwards range trade throughout the summer with more strenght coming in the fall or late summer. There is still a chance things will take off like I had hoped but the more likely scenario is the upwards range trade. Full Story
This week’s report is going to focus on a seldom discussed possibility that may be starting to rear its ugly head – intermarket disassociation. For years, perhaps decades, the markets have exhibited certain relationships between one another. Full Story
1st Hour: Headline news & Market Weatherman Forecast. Spotlight Stock Picks with big dividends. The International Forecaster and Host Chris Waltzek answer listener questions. 2nd Hour: Peter Eliades, Stockmarket Cycles: Full Story
By: Jason Hommel, Silver Stock Report - 15 June, 2008
Antal Fekete was kind enough to respond to my last email, "Silver Shorts are so Naked, they've "Gone Wild", which was actually a response to his article, which was a response to my claims and Ted Butler's claims and others claims that many or most people who have promised silver for delivery probably don't have the silver to deliver. Fekete's direct response has enough good questions for a solid interview or debate. Full Story
By: Bob Chapman, The International Forecaster - 15 June, 2008
The acceleration of inflation is baked into the economic cake for, at minimum, the next 12 to 18 months worldwide. Fed jawboning won't change that. Phony PPT dollar rallies won't change that. Fed rate hikes won't change that. The reduction of money and credit won't change that. Falling oil prices won't change that. Lies about economic statistics, and especially about inflation data, won't change that. So, why can't the rate of inflation be changed for the next 12 to 18 months, you might ask? Full Story
By: John Mauldin, Millennium Wave Advisors - 15 June, 2008
This week we look at the cost of what could be a renewed effort to Whip Inflation Now, not just here but in countries worldwide. Will Trichet in Europe raise rates even as the European economy seems to be slowing down? If you think inflation is bad in the US and Europe, take a peek at Asia. And I ask, "What will Ben do?" It should make for an interesting letter. Full Story
Recently, when silver was topping out at around $21 per ounce, there was an acute shortage of silver available for investing. This investment demand problem threatened to kick silver into an industrial deficit driven price revolution. The problem was resolved via unofficial rationing. New silver eagles and new 100 ounce bars have become increasingly unavailable since that time. Full Story
By: Richard Daughty, The MOGAMBO GURU - 15 June, 2008
If you are like me, you are suddenly realizing that your income did not go up by 0.2%, or any percent, because if it did, it seems like you would have remembered it. And anyway, if my income DID go up, then where in the hell is all of this money? Full Story
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